Simple Trick To Pay Off Your House In Half The Time (It’s Genius)

For most of us, our home mortgage is our most significant debt. Recent home buyers know firsthand how fast mortgages add up when buying a new home.

Wouldn’t it be nice to eliminate your most significant debt early? Believe it or not, you can.

When you get a mortgage, you’re borrowing a certain amount to pay for a home or land, minus any down payment you make during the transaction. This is called your principal.

How Mortgages Work

Mortgages generally come in either 15-year or 30-year term lengths, meaning you have that amount of time to pay back the mortgage to the lender. The shorter the term length, the bigger your monthly payment.

The trick to paying off your mortgage is by making additional principal-only payments.

How to Pay Off Your House in Half The Time

Mortgage lenders typically do not charge prepayment penalties for mortgages issued in 2014 or after. If you are unsure if your mortgage lender charges prepayment penalties, call them and find out. You may need to refinance your mortgage first by going to another lender without those penalties if they do.

This may not seem like a lot, but over a 30-year mortgage, making 30 additional payments will shrink your mortgage term by several years.

Switch Your Payments to Bi-Weekly

The second way to pay down your mortgage sooner is by making principal-only lump sum payments yearly. These payments can be made monthly or annually, depending on your financial situation.

Make Extra Lump-Sum Payments During the Year

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